Definition of commercial organization

Joshua Wallace Updated April 17, 2017

The term commercial organisation is general and applies to any group(s) with a particular set of skills, priorities, strategies, and resources that organise to collectively achieve the "specific aim" of making a profit. Ultimately, the first concern of commercial organisations is to make a profit for the owner, shareholders, or both, by providing products and services. To properly understand what a commercial organisation is requires being aware of the many "for profit" activities commercial organisations participate in. Although not an exhaustive list, notable types of commercial organisations specialise in entertainment, commercial broadcasting, banking, agriculture and organised crime.

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Entertainment

The majority of entertainment organisations produce, provide or otherwise aid in the production or creation of entertainment activities for customers in hopes of realising a profit. Examples of commercial organisations implementing entertainment business models are nightclubs, sport activities, live music venues and movie theatres. The common theme uniting these examples are the physical locations where customers actually "go to" and "pay for" the particular type of entertainment.

Broadcasting

Commercial broadcasting involves selling advertisements (airtime) to other entities, and in so doing, making a profit. Business models for commercial broadcasting organisations may also include pay-per-view television programming and donation-based models. Although commercial broadcasting organisations contribute significantly to entertainment activities, two main factors set commercial broadcasting apart from entertainment organisations: (1) broadcasting isn't a platform strictly for entertainment purposes and (2) broadcasting is a platform where recipients of the service aren't required to go to a specific location to participate.

Agriculture

Commercial agriculture is an organisation specialising in cultivating and processing crops or livestock for large-scale distribution for the purpose of making a profit. Products produced from commercial agricultural activities are sold to supermarkets or wholesalers that are often the first point of contact with consumers.

Criminal Organizations

Organised crime is also an example of a commercial organisation's primary aim to make a profit by producing, distributing, selling or reselling illegal products, or performing illegal activities. For example, a criminal organisation may implement business models that involve seeking out discrepancies within the marketplace, and in so doing, capitalising on selling products (illegal drugs) where the perceived value of those products are highly unstable or otherwise controversial.

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References

About the Author

Joshua Wallace resides in Las Vegas and has been a freelance writer since 2006. He has ghostwritten several books and is also a grant writer. Wallace brings a diverse set of expertize to his articles. He is a certified personal trainer, a Web-designer and a viral marketing consultant. Wallace is finishing his Bachelor of Science in psychology.